China Vows Tax Crackdown

The Chinese government’s vow to increase tax scrutiny of foreign companies has sent firms rushing to tax advisers ahead of the implementation on Sunday of new rules designed to rein in cross-border tax avoidance.

Tax professionals and business lobbies alike have welcomed the move as an attempt to bring China’s tax regime more in line with international standards.

But it has also caused concern that authorities could use the policy, which came into effect on Feb. 1, as a political tool to put the pinch on foreign companies, on top of what business lobbies lament is an increasingly tough business climate in the world’s second largest economy.

CNBC

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